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Nassau Takeover Is Upheld

By

Sumathi Reddy

Updated March 15, 2011 12:01 a.m. ET

A state Supreme Court justice on Monday declined Nassau County's request to block the state from seizing control of the affluent municipality's finances, meaning an oversight board now has the authority to approve borrowing, contracts and impose a wage freeze.

Justice Arthur Diamond dismissed the county's argument that the Nassau County Interim Finance Authority's actions were unconstitutional and that the state-appointed board no...